BSE launches Sensex derivative contracts at IFSC in GIFT City, Gujarat

BSE has launched Sensex derivative contracts at the International Financial Services Centre (IFSC) in GIFT City, Gujarat.

 

These US dollar-denominated contracts will be traded on the India International Exchange (India INX), BSE’s dedicated stock exchange for GIFT-IFSC.

 

The new contracts offer a 22-hour trading window, enabling global traders to access the Indian market in a tax-efficient manner. GIFT City provides several tax benefits, including no securities transaction tax (STT), capital gains tax, or stamp duty.

 

The minimum ticket size for Sensex derivatives is set at $1, with the final settlement day falling on the last Tuesday of the contract month. The contracts will follow a three-month trading cycle, and settlements will be conducted in cash, denominated in US dollars.

 

 

At the launch event, BSE Managing Director and CEO Sundararaman Ramamurthy highlighted GIFT City’s competitive advantages for global investors. In FY25, India INX recorded an average daily turnover of $206 million.

 

Currently, rival NSE offers Nifty index-based derivative contracts at GIFT City through a partnership with the Singapore Exchange (SGX). In July 2023, the SGX Nifty was migrated to NSE’s International Exchange (NSE IX) and rebranded as GIFT Nifty. The GIFT Nifty has seen exponential growth, with an average daily turnover of $95 billion in January.